I watch a grandmother of my acquaintance attempt to take control of her granddaughter, not to the same extent as the one quoted, but deliberately undermining the parents' authority, particularly that of the father, so that the relationship has finally collapsed.
However, the mother has immediately moved on to a new partner and moved in with him, some distance away, so the grandmother will not have the same daily contact and control. I think warning lights began to flash.
Unfortunately I don't think there is much you can do to help as the sixteen year old has been made dependent on her grandmother, emotionally and financially, and the parents appear to have passively allowed it to happen. The younger child needs to be removed immediately from any contact with the grandmother, although it sounds as though she is not interested anyway, but it is very hard on her to be denied all the treats. A dreadful situation.
By special request, let’s discuss our favourite Classic Music and why?


